S&P ups Nissan rating to BBB+

Agency also affirms rating on Nissan stakeholder Renault

By

OsamuTsukimori

TOKYO (CBS.MW) - Standard & Poor's Ratings Service on Tuesday raised its long-term corporate credit and debt ratings on Nissan Motor to 'BBB+' from 'BBB,' reflecting further improvement in the automaker's operational and financial performance on the back of its stronger competitive position.

The outlook on the long-term rating is stable. The ratings agency also affirmed its 'A-2' short-term rating on Nissan.

S&P also said it has affirmed its rating on Renault SA (013190), which has a 44.4 percent stake in Nissan, at 'BBB/A-2,' and revised up its outlook on the long-term corporate rating to positive from stable.

"Nissan's competitive position has improved significantly since the late 1990s, owing to a more profit-oriented product development strategy, rigorous cost cutting in purchasing, and its improved brand image, with more conservative sales incentives and sales-financing products," said Chizuko Satsukawa, S&P credit analyst.

Shares of Nissan (7201)
NSANY, -1.81%
closed down 1.9 percent in Tokyo ahead of the news. The Nikkei Average fell 1.6 percent.

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